{"id":330125,"date":"2024-10-29T01:36:56","date_gmt":"2024-10-28T17:36:56","guid":{"rendered":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/?p=330125"},"modified":"2024-10-29T01:36:58","modified_gmt":"2024-10-28T17:36:58","slug":"stock-in-focus-rl-commercial-reit-rcr-29-oct-2024-by-ap-securities","status":"publish","type":"post","link":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/stock-in-focus-rl-commercial-reit-rcr-29-oct-2024-by-ap-securities\/","title":{"rendered":"Stock in Focus: RL Commercial REIT (RCR) – 29 Oct 2024 by AP Securities"},"content":{"rendered":"\n

Summary of Broker’s Recommendation<\/h2>\n\n\n\n
Stock Code<\/strong><\/td>RCR<\/td><\/tr>
Company Name<\/strong><\/td>RL Commercial REIT Inc.<\/td><\/tr>
Broker<\/strong><\/td>AP Securities<\/td><\/tr>
Opinion Issued on<\/strong><\/td>29 Oct 2024<\/td><\/tr>
Recommendation<\/strong><\/td>Buy<\/td><\/tr>
1-Year Target Price<\/strong><\/td>PHP 7.01<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
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Aside from the reasons discussed below, another key area that we should take into account is the valuation side. While RCR\u2019s price has risen over the past few weeks already, upside remains substantial to our Target Price of P7.01, and this potential capital appreciation is further supplemented by the stock\u2019s very generous annual dividend yield of 6.6%.<\/p>\n\n\n\n

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Analysis and Opinion<\/h2>\n\n\n\n

That was fast<\/strong><\/p>\n\n\n\n

We recently published a write-up on a private placement executed by RLC, as it sold 318.9-Million shares of RCR at P5.86\/share, effectively raising P1.9-Billion. Just a few days later, the company has already released a reinvestment plan for the aforementioned proceeds, disclosing corporate land acquisitions in Luzon worth P500-Million, Visayas worth P2-Billion, and Mindanao worth P500-Million. <\/p>\n\n\n\n

Note that the allocated P3-Billion mentioned in the reinvestment plan is higher than the P1.9-Billion raised through the transaction which could mean that the company could be supplementing the proceeds with internal funds for the deficit, which shows their commitment to push through with expansions which would eventually be earnings accretive. <\/p>\n\n\n\n

This is also aligned with our expectations that expansions by property developers would primarily be in Areas Outside of NCR as demand is slowly starting to post a continued shift towards the fringes, as shown by the Residential Real Estate Loans (RREL) granted over the past quarters.<\/p>\n\n\n\n

Cuts all around<\/strong><\/p>\n\n\n\n

The BSP cut another 25 bps from the RRP on October 16, bringing down key interest rates to 6% for the year. Coupling this with the reduction of the banks\u2019 Reserve Rate Requirement (RRR) by 250 bps which will take effect by October 25, and we have a scenario where property developers such as RLC can take a more aggressive stance to ride the wave of cheaper funding. As the cost of debt continues to fall, we expect this to translate to further ramping up of expansions within the sector.<\/p>\n\n\n\n

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Check how many brokers recommend this stock<\/h2>\n\n\n\n
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All Stock Rankings<\/a><\/blockquote>